( BW)(FL-PEDIATRIX-2)(PDX) Pediatrix Raises 2002 Guidance to EPS of Between $2.40 to $2.47; Issues Long-Term Annual EPS Growth Rate of 20 to 25 Percent

    Business Editors/Health & Medical Writers

    FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Feb. 7, 2002--Pediatrix Medical Group, Inc., (NYSE:PDX) today announced expanded earnings guidance for calendar year 2002, increasing estimated earnings to $2.40 to $2.47 per share, which includes the positive impact from the elimination of goodwill amortization.
    Pediatrix provided the guidance this morning on a conference call following the release of its 2001 fourth quarter and full year results. The following table provides a range of Pediatrix's earnings per share estimates by quarter and for calendar year 2002:

---------------------       ----------------   
      Period                 Estimated EPS      
---------------------       ----------------   
2002 First Quarter          $0.53 to $0.54     
---------------------       ----------------   
2002 Second Quarter         $0.58 to $0.60     
---------------------       ----------------   
2002 Third Quarter          $0.64 to $0.66     
---------------------       ----------------   
2002 Fourth Quarter         $0.65 to $0.67     
---------------------       ----------------   
Calendar Year 2002          $2.40 to $2.47     
---------------------       ----------------                               

    Previous guidance was for earnings per share of between $2.30 to $2.40.
    The components behind the expanded guidance include the full-year impact of the operations of Magella Healthcare Corporation, a company that was acquired May 15, 2001, patient volume increases of 3 to 5 percent, reimbursement increases of 3 to 5 percent, and continued investments in physician group practice acquisitions. Pediatrix expects to invest between $50 to $60 million on accretive acquisitions of physician groups.
    Pediatrix also expects cash flow from operations of approximately $80 million for 2002.
    During the conference call, Pediatrix also established annual EPS growth rate targets of 20 to 25 percent for periods beyond 2002. This growth rate will be achieved through a combination of same-unit volume growth, acquisition growth, and pricing improvements as the company builds its market position across the nation.

    Investor Conference Call

    A telephone replay of the conference call will also be available from 2:30 p.m. (EST) today through midnight (EST) February 14, 2002 by dialing (800) 475-6701, access code: 621990. A webcast replay of the conference call is also available at http://www.vcall.com.

    About Pediatrix

    Pediatrix was founded in 1979. Its neonatal physicians provide services at more than 185 NICUs and through Obstetrix its perinatal physicians provide services in many markets where Pediatrix's neonatal physicians practice. Combined, Pediatrix and its affiliated professional corporations employ more than 590 physicians in 27 states and Puerto Rico. Additional information is available on the Internet: http://www.pediatrix.com.

    Except for historical information, matters discussed in this release include forward-looking statements that involve risks and uncertainties including, but not limited to, business, financial and integration risks. In addition, Pediatrix details other risk factors in its Annual Report on Form 10-K for the year ended December 31, 2000, filed with the U.S. Securities and Exchange Commission. These risks and uncertainties could cause actual results to differ materially from those projected or anticipated in the forward-looking statements.

    The forward-looking statements in this press release are made as of the date hereof based on management's current beliefs and expectations, and the Company undertakes no obligation to update or revise any such statements, whether as a result of new developments, new information or otherwise.

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    CONTACT:  Pediatrix Medical Group, Fort Lauderdale
              Bob Kneeley, 954/384-0175, x-5300
              bob_kneeley@pediatrix.com
    
    KEYWORD:  FLORIDA
    INDUSTRY KEYWORD:  MEDICAL ADVISORY CONFERENCE CALLS
    SOURCE:  Pediatrix Medical Group